Back to news

December 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

US and China Dominated Arms Market in 2019: SIPRI Report

China's heavy investments in the defense industry appears to be paying off with Beijing dominating the global arms market in 2019 while Russia is losing ground.

Total sales by the top 25 rose by 8.5% to $361 billion, or 50 times the annual budget of the U.N.'s peacekeeping operations. The United States is still number 1, accounting for 61% of sales by the world's top 25 manufacturers last year, way ahead of China's 16%, a Stockholm International Peace Research Institute (SIPRI) report published Monday reveals.

In 2019, the top five arms companies were all based in the U.S. - Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics. These five together registered $166 billion in annual arms sales. In total, 12 U.S. companies appear in the top 25 for 2019, accounting for 61% of the combined arms sales of the top 25.

The largest absolute increase in arms revenue was registered by Lockheed Martin: $5.1 billion, equivalent to 11% in real terms.

Chinese companies that made its way to the global top 25 are Aviation Industry Corporation of China (AVIC; ranked 6th), China Electronics Technology Group Corporation (CETC; ranked 8th), China North Industries Group Corporation (NORINCO; ranked 9th), and China South Industries Group Corporation (CSGC; ranked 24th). Their combined revenue grew by 4.8% between 2018 and 2019.

“Chinese arms companies are benefiting from military modernization programmes for the People's Liberation Army,” SIPRI Senior Researcher Nan Tian said.

The only two Russian companies in the list - S-400 missile system manufacturer Almaz-Antey in 15th spot and United Shipbuilding in 25th - accounted for 3.9% of 2019 arms sales. The revenues of the two firms both decreased between 2018 and 2019, by a combined total of $634 million. A third Russian company, United Aircraft, lost $1.3 billion in sales and dropped out of the top 25 in 2019.

Alexandra Kuimova, Researcher at SIPRI, said: “Domestic competition and reduced government spending on fleet modernization were two of the main challenges for United Shipbuilding in 2019.”

For the first time, a Middle Eastern firm appears in the top 25 ranking. EDGE, based in the United Arab Emirates (UAE), was created in 2019 from the merger of more than 25 smaller companies. It ranks at number 22 and accounted for 1.3% of total arms sales of the top 25.

https://www.defenseworld.net/news/28477#.X8_0tdhKiUk

On the same subject

  • Where the next iteration of the Army’s network capabilities is heading

    May 11, 2020 | International, C4ISR

    Where the next iteration of the Army’s network capabilities is heading

    Andrew Eversden The Army is finishing up a list of requirements for technologies it needs for the next round of its network modernization capabilities, known as Capability Set 23, one of the service's network leaders said May 6. The Army wants to have research and development contracts for prototypes signed no later than July, according to Maj. Gen. Peter Gallagher, director of the network cross-functional team for Army Futures Command. He added that the ongoing coronavirus pandemic has slowed the timeline. Capability set 23 is a follow-on effort to capability set 21, which is addressing current capability gaps in the Army's network with technology currently available, such as improved network transport capabilities. The service plans to deploy new network tools every two years starting in 2021 as part of a continuous network modernization plan. “We realized we weren't going to be multi-domain dominant with what we fielded in Cap Set '21,” said Gallagher, speaking May 6 at the C4ISRNET conference. For Capability Set '23, the service plans to take advantage of emerging technology, with developments from either commercial industry or internal researchers that are part of the Command, Control, Communications, Commuters, Cyber, Intelligence, Surveillance and Reconnaissance Center at Aberdeen Proving Ground. “The next steps for Cap Set '23 — it's about enhanced capacity in our network backbone,” said Gallagher. “High capacity, low latency communications that are not readily available today, but they're emerging in technology." The key piece for is medium-Earth and low-Earth orbit satellite constellations, which will provide the Army with significantly more bandwidth and reduced latency. “In some cases, it's kind of like having a fiber optic cable through a space-based satellite link,” Gallagher said. Gallagher added that Army plans to prototype the technology over the next year and added that around spring next year the Army plans to be working on the preliminary design review for Capability Set '23. Capability Set '23 will also expand on tools from Capability Set '21 to increase the resiliency of the Army's network. Gallagher said that the service is looking at advanced networking waveforms that can be effective in a contested environment. For Capability Set '23, the Army reviewed more than 140 white papers on capabilities and narrowed its selection to 12 papers that they thought would be ready for the second capability set iteration and will help “prototype and make some network design choices," Gallagher said. The Army then held a “shark tank” style event in March and is now “actively in discussions with vendors,” said Justine Ruggio, director of communications for the Network Cross Functional Team at Army Futures Command. Meanwhile, the Army is collecting feedback from soldiers on Capability Set '21 pilots and will procure those technologies this year. Initial delivery of the new capabilities to units is scheduled for second quarter of fiscal 2021, Gallagher said. https://www.c4isrnet.com/battlefield-tech/c2-comms/2020/05/07/where-the-next-iteration-of-the-armys-network-capabilities-is-heading/

  • Air Force prepares to retire U-2 spy planes in 2026

    May 2, 2023 | International, Aerospace, C4ISR

    Air Force prepares to retire U-2 spy planes in 2026

    Congress needs to approve the retirement plan, which has run afoul of lawmakers in the past.

  • Asset manager VanEck's defence ETF attracts investors amid global conflicts
All news